Schroders Capital’s renewables arm has set up a semi-liquid fund to make investing in renewable energy and energy transition infrastructure easier and more flexible for investors.

Schroders Greencoat said it has launched the Schroders Capital Semi-Liquid Energy Transition Fund aimed at “boosting our clients’ access to both private assets solutions which offer new and diversifying return streams, as well as energy transition investment solutions”.

The semi-liquid structure will enable Schroders Greencoat to invest in illiquid infrastructure assets with a long-term perspective, while offering greater flexibility and operational simplicity to investors, the fund manager said.

Schroders Capital Semi-Liquid Energy Transition Fund, classified as an Article 9 fund under the EU Sustainable Finance Disclosure Regulation, will deploy capital across diverse technologies and project stages globally with a specific focus on the US and Europe.  

Duncan Hale, portfolio manager at Schroders Greencoat, said: “The energy transition represents one of the largest and most relevant investment themes impacting clients’ portfolios and, as a result, it’s an exciting and attractive time to be accessing these types of investments.

“This fund highlights our commitment to expanding access to private assets and generating positive returns for our clients through directly allocating to energy transition infrastructure.”

The fund aims to provide risk-adjusted returns with a gross return target greater than 10%.

Hale said: “Achieving net zero by 2050 requires significant change and investment into energy infrastructure. This offers a great opportunity for investors to benefit from an innovative fund structure which supports their ability to access energy transition assets that can not only offer attractive returns but also take advantage of a risk profile which delivers strong diversification characteristics for investors’ portfolios.”

The Schroders Capital Semi-Liquid Energy Transition Fund is Schroders Capital’s sixth semi-liquid fund. Funds within the range include Global Private Equity, Circular Economy Private Plus, Global Innovation Private Plus and the Global Real Estate Total Return.

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